Good news for all UPI users! The National Payments Corporation of India (NPCI), the governing body for UPI, has significantly increased the per-transaction limit for a specific category of payments. Effective September 15, 2024, you can now use UPI to make tax payments of up to ₹5 lakh in a single transaction.
This move was announced following the Reserve Bank of India’s (RBI) monetary policy statement on August 8, 2024, where Governor Shaktikanta Das highlighted the need to enhance the UPI limit for tax payments, raising it from ₹1 lakh to ₹5 lakh. This change will undoubtedly ease the payment process for taxpayers, making it more convenient to fulfill their financial obligations.
The new limit applies to ‘verified merchants’ who are categorized under MCC-9311 (tax payments) by the NPCI. This means that users can leverage this higher limit when making tax payments through their preferred UPI app, directly to government entities or authorized service providers.
The NPCI’s decision to increase the UPI limit for tax payments reflects the growing popularity of this digital payment method. With its ease of use, security, and wide acceptance across India, UPI has become a preferred choice for millions of users. The increase in the limit not only facilitates smoother and quicker tax payments but also encourages the adoption of digital financial services, paving the way for a more inclusive and efficient financial ecosystem.
